(a) The board, upon request of the state building commission,
shall transfer moneys as a loan to the state building commission in
an amount not to exceed in the aggregate twenty-one million dollars
for the purposes of financing or refinancing the projects specified
in subsections (b) and (d), section eight, article six, chapter
five of this code. The money borrowed shall bear interest during
the term of the loan at a fixed rate not to exceed the interest
rate on treasury notes, bills or bonds of the same term as the term
of the loan the week of closing on the loan as reported by the
treasury of the United States. Loans made under this subsection
shall be repaid in regular monthly or semiannual payments, or as
funds are made available by the budget office of department of
administration, and shall be paid in full not later than
twenty-five years from the date the loans are made with terms and
conditions mutually agreed upon by the state building commission
and the investment management board.

(b) The state investment management board shall upon request
of the state building commission transfer moneys as a loan to the
state building commission in an amount not to exceed in the
aggregate one hundred thirty-seven million dollars for the purposes
of financing construction of regional jails, correctional
facilities or building extensions or improvements to regional jails
and correctional facilities. Prior to the expenditure of any loan
proceeds, the regional jail and correctional facility authority shall certify a list of projects to the state building commission
and the joint committee on government and finance that shall be
funded from loan proceeds. This certified list cannot thereafter
be altered or amended other than by legislative enactment. The
state building commission shall borrow money as needed by the
regional jail and correctional facility authority. The investment
management board shall transfer loan proceeds to the authority for
expenditure. The money borrowed shall bear interest during the
term of the loan at a fixed rate not to exceed the interest rate on
treasury notes, bills or bonds of the same term as the term of the
loan the week of closing on the loan as reported by the treasury of
the United States.

(c) The regional jail and correctional facility authority
shall expend the loan proceeds received under the provisions of
subsection (b) of this section to proceed with the projects
included in the letter submitted to the joint committee on
government and finance dated the fifteenth day of January, one
thousand nine hundred ninety-seven: Provided, That the letter
shall not be construed to prioritize any project or projects which
are included in the letter: Provided, however, That the authority
may also expend loan proceeds for any expansion to any existing
regional jail or any expansion to a regional jail under
construction upon the effective date of this section.

(d) Loans made under this section for the projects specified
in subsection (b) of this section and in subsection (d), section eight, article six, chapter five of this code, shall be repaid in
annual payments of not less than twelve million dollars per year by
appropriation of the Legislature to the board. The amount
transferred for loans under subsection (a) or (b) of this section
shall not exceed that amount which the board determines is
reasonable given the cash flow needs of the consolidated fund. The
board shall make transfers for loans first for the project
specified in subsection (d), section eight, article six, chapter
five of this code, second for the projects specified in subsection
(b) of this section and third for projects specified in subsection
(b), section eight, article six, chapter five of this code, which
are in imminent danger of default in payment. The board shall
take the steps necessary to increase the liquidity of the
consolidated fund over a period of the next five years to allow for
the loans provided in this section without increasing the risk of
loss in the consolidated fund.